Housing association raises £250m bond | News

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Housing association raises £250m bond

Midland Heart has issued a 30 year £250m bond as it plans to build 3,000 new homes.

The bond, which is at Gilts plus 120 basis points for an all in yield of 1.831%, is the "record lowest coupon ever achieved" for the housing association.

The bond issue has been assigned a sector leading A1 debt rating from Moody’s.

The Midland-based housing association is planning to build 3,000 new homes between 2019 and 2024 with 570 homes already completed, another 1,060 on site and 1,000 in the pipeline.

Chief Executive Glenn Harris commented: "We're extremely pleased to be issuing this bond with our strong A1 debt rating. This is testimony to the strong financial position Midland Heart is in and will help us to support the post Covid-19 economic recovery in the Midlands.

"Providing customer excellence is at the heart of everything we do and this increased investment will help to further improve the services that our customers rely on and to develop more affordable homes for those who need them."